In the Phillips curve, $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a } , \bar { a }$
represents a change in government spending.

Name: In the Phillips curve, $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a } , \bar { a }$ represents a change in government spending.
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Question

In the Phillips curve, $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a } , \bar { a }$ 
represents a change in government spending.

Quizplus · Accepted Answer

In the Phillips curve, $\bar{a}$ typically represents the autonomous component of inflation, not a change in government spending.

In the Phillips Curve Δπt=v‾Y~t+aˉ,aˉ\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a } , \bar { a }Δπt​=vY~t​+aˉ,aˉ

In the Phillips Curve $\Delta \pi _ { t } = \overline { \boldsymbol { v } } \tilde { Y } _ { t } + \bar { a } , \bar { a }$